Dynatrace, Inc. (NYSE: DT)

Sector: Technology Industry: Software - Application CIK: 0001773383
Market Cap 12.67 Bn
P/B 4.56
P/E 25.02
P/S 6.84
ROIC (Qtr) 5.25
Div Yield % 0.00
Rev 1y % (Qtr) 18.11
Total Debt (Qtr) 86.82 Mn
Debt/Equity (Qtr) 0.03

About

Dynatrace, Inc. (DT), a software company, operates in the observability, security, and automation sector. The company's main business activities revolve around developing and marketing software products that offer observability, security, and automation capabilities for IT environments. Dynatrace's operations span various countries, with a customer base comprising some of the world's largest organizations in industries such as banking and financial services, government, insurance, retail and wholesale, transportation, and software companies. Dynatrace's...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 506.74M provides robust 5.84x coverage of total debt 86.82M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 1.23B provide 72.15x coverage of short-term debt 16.98M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 2.71B provides 31.25x coverage of total debt 86.82M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 472.94M exceeds capital expenditure of 33.79M by 13.99x, indicating strong organic growth funding capability.
  • Retained earnings of 390.12M provide full 5.59x coverage of long-term debt 69.84M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 506.74M barely covers its investment activities of (29.20M), with a coverage ratio of -17.35, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (29.20M) provide weak support for R&D spending of 424.79M, which is -0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 506.74M provides insufficient coverage of deferred revenue obligations of 932.93M, which is 0.54x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 506.74M shows concerning coverage of stock compensation expenses of 291.05M, with a 1.74 ratio indicating potential earnings quality issues.
  • Operating cash flow of 506.74M provides minimal -2.25x coverage of tax expenses of (224.94M), suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2025)

Product and Service Breakdown of Revenue (2025)

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.82 2.65
EV to Cash from Ops. EV/CFO 22.71 13.37
EV to Debt EV to Debt 132.52 57.69
EV to EBIT EV/EBIT 49.37 19.12
EV to EBITDA EV/EBITDA 44.60 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF 24.33 14.69
EV to Market Cap EV to Market Cap 0.91 -92.28
EV to Revenue EV/Rev 6.21 4.60
Price to Book Value [P/B] P/B 4.56 4.26
Price to Earnings [P/E] P/E 25.02 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) -4.83 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -32.11 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 35.04 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 222.53 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.62 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) 59.78 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) 53.61 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) 207.27 123.84
FCF Growth (1y) % FCF 1y % (Qtr) 8.44 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.80 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.06 3.75
Current Ratio Curr Ratio (Qtr) 1.59 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.17
Interest Cover Ratio Int Coverage (Qtr) -4.83 -52.32
Times Interest Earned Times Interest Earned (Qtr) -4.83 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 14.30 -100.06
EBIT Margin % EBIT Margin % (Qtr) 12.58 -164.24
EBT Margin % EBT Margin % (Qtr) 15.19 -116.94
Gross Margin % Gross Margin % (Qtr) 81.50 58.20
Net Profit Margin % Net Margin % (Qtr) 27.30 -121.65